The Sucasa Process

1. Property Search The Sucasa team targets existing buildings that need minimal rehab work for a lower energy footprint. We also lower financial risk to the investor by focusing on neighborhoods with good resale prospects.
2. Evaluation Sucasa uses conservative financial projections and healthy budgets with contingencies. Only projects that can be complete within 180 days are accepted. Any partners involved with Sucasa are subject to strict financial standards.
3. Investor Outreach After shortlisting projects with the highest likelihood of closing, Sucasa reaches out to investors for financing. Sucasa offers its investors complete financial transparency and risk assessments so that they can make an educated decision.
4. Project Management Sucasa works closely with its partners and contractors throughout a project. We conduct regular property inspections to ensure projects are on schedule. Small incremental payouts are made only after completion of tasks. Investors are regularly updated on the rehab and marketing process.
(1) How does Sucasa and its business partners find the deals?
Sucasa and its business partners aim to purchase properties below market value, ensuring some equity buffer for the investor. Sources are typically non-profit partners but can come from direct bank contacts, MLS listings, wholesalers, and auctions.
(2) How long will these deals last?
There are multiple economic factors involved. A glut of foreclosed homes from the housing crisis in 2008 provides a continued supply, while the U.S. Federal Reserve’s announcement (as of September 13, 2012) to keep interest rates near zero through mid-2015 enable a continued supply of affordable properties and financing for buyers. Sucasa recognizes that these prospective deals may not to be on the market for extended periods of time, and is working diligently to capitalize on the current economy.
(3) How do you ensure the properties are sold, especially with the US housing crisis?
Properties are only considered if they are located in the better neighborhoods/townships of the Chicagoland area of Illinois for more curb appeal. Sucasa is also considering expansion to more profitable and legislatively-friendly states in the U.S.

Properties are also sold well-below market value to ensure rapid turnover. This also provides added incentive (instant equity) for prospective home-owners. In the event that our lower-income buyers are unable to secure financing, our properties can still be sold on the market although the sales process may take longer.
(4) How do you know what a property is worth?
Properties are valued by licensed appraisers using comps (listings of comparable recently sold properties), or licensed real estate brokers using a Broker’s Price Opinion (BPO). These numbers provide a reliable indicator for us to set our benchmarks for ARV (after-repair-value). We use conservative estimates in our financial projections to discount the investment property value as well.
(5) What if the project doesn't work out, can I get my money back?
While we can never predict the future, in the event that the project ends due to unforeseen circumstances (natural disasters, severe building structural issues deemed too expensive to correct, unexpected regulatory delays that push project timelines too far out, etc.), Sucasa will return the principal loan to the investor. By having adequate insurance, possible equity buffer at purchase and sourcing in the more sought-after neighborhoods of Chicago, we are confident in our properties holding value at or above the initial investment. The process may take several months since the property has to be liquidated in accordance with Illinois state law.
(6) Who holds title to the property during the project?
Sucasa will hold title to the property. In the case of rehab partnerships, Sucasa’s business partners will hold title, while Sucasa holds the mortgage and has first-position lien as collateral.
(7) Are there additional issues or risks I need to be aware of?
For international investors please consider exchange rates and transfer fees (outbound).
(8) If there are multiple investors in a project, will there be a bias?
No. Every investor in a project regardless of their contribution will receive their fair percentage share in profits. Once an investor has committed to the project, they are required to stay committed for the entire loan period and may not influence the project’s rehab or sales process.
(9) How many projects can you handle at a time?
Sucasa maintains connections to a large crew of contractors and service professionals and can comfortably handle up to 6 projects at any one time. If there are lucrative projects and available financing, Sucasa will consider expanding its crew after appropriate vetting of their qualifications.
(10) What are the tax implications?
Sucasa will issue a structured promissory note (short term indebtedness commercial paper).

Foreign Investors: If you are a nonresident alien, you may be subject up to 30% tax withholding requirements based on your country of origin. Sucasa will withhold tax payments on your behalf and submit the required paperwork before the end of the calendar year. If you are unsure of your legal status, please consult a licensed tax professional.

US Investors: You will be required to pay income tax on capital gains as required by US state and/or federal regulations.
(11) I'm interested. How do I get started?
Sucasa will present a portfolio of possible investment property options for you and find the one that best fits your needs, schedule and expected returns. If no projects are immediately available, you will be added to our contact list and Sucasa will contact you once a suitable property is found.

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